Refiners hike edible oil prices by up to Tk 13 a litre

• Soybean, palm oil retail prices raised
• Commerce ministry approval remains in dispute
• Consumers warn against arbitrary price hikes

Refiners have increased the retail prices of soybean and palm oil by Tk 6 and Tk 13 per litre, respectively, effective from today.

The price of bottled soybean oil has been set at Tk 195 per litre, up 3 percent from Tk 189 per litre.

They will sell bottled palm oil, the most consumed edible oil in Bangladesh, at Tk 163 per litre, which is 8.66 percent higher than the previously fixed Tk 150, according to a press release issued by the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association yesterday.

The price of a 5-litre bottle of soybean oil has been hiked by Tk 25, or 2.71 percent, to Tk 945, said the association, adding that the new rates have been fixed in consultation with the commerce ministry, in line with international prices.

However, Kamal Hossain, public relations officer of the Ministry of Commerce, told The Daily Star that, so far, the government has not granted any permission to the refiners to increase the prices.

He said a meeting was held at the Ministry of Commerce with edible oil refiners yesterday. In the meeting, new prices for soybean and palm oil were discussed. "However, the ministry has not yet approved the price hike."

A senior official of a leading edible oil importer and processor, requesting anonymity, however, claimed that the announcement regarding the price hike was made on the basis of approval from the ministry.

According to Hossain, earlier on September 22, the commerce ministry held another meeting, chaired by Commerce Adviser Sk Bashir Uddin, with the refiners. In that meeting, the ministry, based on the proposals from the refiners, agreed that edible oil prices should be increased. Traders had proposed raising the prices of soybean and palm oil by Tk 10 per litre, citing the increased international price. However, no decision was reached on the amount.

The latest hike comes at a time when the prices of loose soybean and palm oil were already seeing an upward trend at the retail level.

Yesterday, loose or unpackaged palm oil sold at Tk 155-Tk 160 per litre in Dhaka's kitchen markets, up 1.29 percent from a month ago. During the same period, loose soybean oil prices rose 2.3 percent to reach Tk 172-Tk 178 per litre, according to market price data compiled by the Trading Corporation of Bangladesh.

AHM Shafiquzzaman, president of the Consumers Association of Bangladesh, said any price increase for essential products must comply with the procedures outlined in the Essential Commodities Act or the Distribution Act of 2011, including proper official notification.

He expressed concern that these procedures appear to have been overlooked.

Shafiquzzaman said arbitrary price hikes could lead to significant problems.

"However, if the increase is warranted due to rising international prices, the government should implement measures to protect consumers," he added.

Bangladesh imports most of its soybean and palm oil from abroad in the absence of adequate domestic production.

The country's domestic consumption of soybean and palm oil was 28.6 lakh tonnes, including 11.35 lakh tonnes of soybeans, in the marketing year 2024-25 beginning in October, according to an estimate by the US Department of Agriculture.

Some 85 percent of the edible oil was imported.